The year 2018 is behind us. And, if we were to describe its effect on the global economy in one word, then you’ll probably agree with us that turbulent fits it perfectly just by looking at the facts.
An endlessly ongoing trade war. Cannabis shares surging in price. Cryptocurrencies hitting record lows. A seemingly disjointed UK parliament failing to progress the Brexit negotiations. All these events sent mixed signals to investors and forced them to constantly re-update their portfolios in the hopes of catching up with the racing market trends.
Will the same thing happen in 2019? Let’s find out.
While the main icing on the next week’s cake seems to be several market-moving events from theReserve Bank of New Zealand, there is still a lot going on in the background. Find out what to expect during the 11-15 February period in our weekly issue of “Trading News to Watch Next Week”.
This time around we’ll examine 5 extra caseswhere the markets crashed not just under the hasty fingers of nervous traders, but also due to some serious malfunctions in the automated trading software that they used. Before we do that, however, we’ll attempt to address the question that’s probably swirling in your mind as we speak.
Abrupt market crashes, also known as “flash crashes”, are anything but new. And while their effect on the global economies is typically short-lived, there are instances where such downfalls can spark lengthy economic crises, similar to the Black Tuesday—the day that marked the beginning of the Great Depression.
But if history has taught us anything during all these years of trading it’s that sudden market dips are usually a byproduct of either boundless avarice or downright reckless behaviour. In this article, we’ll look into two real-life examples of how greed and carelessness nearly caused the markets to come to a grinding halt.
Unemployment reports seem to be a major theme for the upcoming week, as well as a series of noteworthy statements concerning Japan’s economic stability. Don’t let trading opportunities slip away—check out our post for the full list of events and make sure to visit our in-depth (and absolutely free to use) Economic Calendar.